EUR/USD:

Weekly Timeframe: The weekly timeframe shows that the EUR/USD is currently reacting off of a combined weekly demand/Quasimodo support area at 1.22403-1.24420/1.22866. Could we assume that further buying will be seen from here? Let’s see what we can find on the lower timeframes.

Daily Timeframe: The spike/tail seen on Monday below the daily demand area at 1.24642-1.25616 appeared to be a nice-looking fakeout in the making, as follow-through buying was seen on Tuesday. However, Wednesday’s trading action saw the sellers take full control pushing price once again below the aforementioned daily demand area. If further selling is seen today, we will very likely witness price hitting a daily support flip level coming in at 1.24062.

4hr Timeframe: The 4hr timeframe shows that price broke below the round-number level 1.25, and seems to have recently respected it as resistance. In the event that the sellers can hold out below this level, it is very likely the 4hr resistance flip level at 1.24408 will be seeing some action very soon. Judging by the strong reaction seen at this level in the past, we are expecting to see a bounce at the very least around the 1.24473 area. That being said though, in our opinion the stop-loss order would need to be placed around 1.23930, which is quite large. The reason for this is price may fake below the 4hr level into the aforementioned daily support flip level. If anyone is considering buying here, we would recommend not trading this level blindly (setting a limit order and hoping). Waiting for confirmation on the lower timeframes would be in our opinion the safest bet.

GBP/USD:

Weekly Timeframe: For the past four weeks price has been seen trading around a weekly demand area coming in at 1.58533-1.60157. As far as buying is concerned, we are a bit cautious as there has been very little ‘convincing’ interest shown by the buyers here. In fact, we would go as far to say that the GBP/USD looks a right mess on this timeframe at the moment! It will be interesting to see what the lower timeframes look like.

Daily Timeframe: The daily timeframe reveals exactly why we are a bit cautious about buying into this market. Price has been consolidating between a minor daily support flip level seen at 1.61609 and a combined daily demand/Quasimodo support area coming in at 1.58533-1.59914/1.58934 since the 03/10/2014 (located deep within the aforementioned weekly demand area). It is only until one of these areas is consumed; we will then have some idea on future direction. This however does not mean we cannot take small positions within this range on the lower timeframes though, as price has just reacted beautifully off of the aforementioned Quasimodo support level (1.58934), and has room to trade to the upper limits of this daily range. Let’s take a look on the 4hr timeframe, and see what we can find.

4hr Timeframe: The 4hr timeframe is showing some very nice-looking price action within the downward trending channel (marked in pink) at the moment. As we can clearly see price did continue south towards a 4hr demand area at 1.58533-1.58915 (located deep within both the weekly and daily demand areas mentioned above), and as anticipated a bullish reaction was seen. Well done to anyone who got long around the 1.58960 area!

In our opinion one of two things will happen now:

If price were to positively close above this channel, and retest 1.6 as support, we would be very interested in buying, ultimately targeting the 1.60871/1.61 area.

More selling could come into the market around current price (at the upper limit of the channel), and force this market back down to the aforementioned 4hr demand area, where we would patiently watch the lower timeframe price action for the next decision to be made.

Buy/sell levels:

Buy orders: N/A (Predicative stop-loss orders seen at: N/A).

Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

AUD/USD:

Weekly Timeframe: The weekly timeframe shows that price has aggressively broken below a weekly demand area coming in at 0.86591-0.88247. Assuming that further selling is seen here, we can likely expect price to test the huge weekly demand looming below at 0.80646-0.84601.

Daily Timeframe: As a consequence of the aggressive selling that was seen yesterday, price was forced out of a medium-term daily range (0.86318-0.87183/0.88961-0.88302). Looking to the left of current price, we see very little stopping this market from trading down to at least a daily resistance flip level seen at 0.85504

4hr Timeframe: Unfortunately, the historical data on this feed does not allow us to see what the 4hr timeframe price action looks like in the past. Nonetheless, we know that price has broken below not only a weekly demand area (0.86591-0.88247), but also a daily demand area (0.86318-0.87183) as well, which has collectively forced price down to around a daily resistance flip level at 0.85504. So we can try and work from there.

We can see on the 4hr timeframe that the recent sell off has broken through multiple support barriers along its way, with price finally showing some signs of buying around 0.85635 (13 pips above the aforementioned daily resistance flip level). At the time of writing, price is seen trading very close to a small 4hr decision-point supply area at 0.86161-0.85963 (tentative sell orders are seen just below at 0.85947). If this area can hold the market lower here, and further selling is seen, price will very likely test the daily resistance flip level sometime soon, where at which point we’ll be watching for lower timeframe confirmation to enter long.

USD/JPY:

Weekly Timeframe: The weekly timeframe shows that price has broken above a major weekly supply area seen at 114.650-112.530. As per this timeframe, the path north appears to be relatively free to until another major weekly supply area coming in at 117.931-116.799. Let’s see what the lower-timeframe picture looks like.

Daily Timeframe: Of course, with the weekly supply area (114.650-112.530) recently being taken out, the small daily supply area (114.650-113.963) located within was obviously going to be consumed as well. With that being said, the daily timeframe shows that a minor daily Quasimodo resistance level is sitting just above the weekly supply area (114.650-112.530) at 114.960, could this be a nice level for pro money to fake into and fool a whole heap of traders on direction??? Let’s take a look to see what we can find on the 4hr timeframe.

4hr Timeframe: The 4hr timeframe shows that price frustratingly missed the round number level 113 by about 15 pips before continuing on yet another impulsive move north.

The historical data is not allowing us to see what the price action to the far left is like, so we’ll have to make do with what we currently have. We know that price has broken above major supply (see above for details), but we can also see that price is nearing a minor daily Quasimodo resistance level (114.960) at the moment, so selling may well be seen soon. If the market turns bearish here, we will be watching lower timeframe price action for potential buying opportunities at the following levels: 114.297, just above a minor 4hr resistance flip level at 114.204, and also around 113.577, just above a 4hr demand area seen at 113.156-113.507.

EUR/GBP:

Weekly Timeframe: Price remains trading relatively deep within a weekly demand area seen at 0.76931-0.78623. Nevertheless, considering where price is currently located, we have not seen much in the way of buying strength over the past few weeks. Let’s see what the lower timeframes have to say about this.

Daily Timeframe: For the time being, it seems that price is consolidating between a daily supply area seen at 0.79109-0.78609, and a daily demand area at 0.77507-0.77772 (located deep within the aforementioned weekly demand area).

4hr Timeframe: The 4hr timeframe shows that price reacted beautifully off of a 4hr decision-point supply area coming in at 0.78661-0.78522 (located just within the aforementioned daily supply area). Assuming the sellers can overcome any buying pressure around 0.78, we will very likely see the market drop down towards 0.77840, a 4hr Quasimodo support level. It would be here where we would become very interested in buying the Euro around the 0.77867 level. Be that as it may, we would need lower timeframe confirmation here, since the higher timeframe picture is not exactly showing much in the way of buying strength at the moment.

USD/CAD:

Weekly Timeframe: The weekly timeframe shows that price is currently trading above the medium-term weekly high 1.12775. Ultimately, we would like to see the current weekly candle firmly close above this level, as this would likely confirm that higher prices may be seen up to around a weekly supply area coming in at 1.17225-1.15417.

Daily Timeframe: Price is currently retesting the 1.13842 high as support; this may in itself provide a nice base to go long from. However, at the same time we also have to be prepared for this level to break, and further selling to be seen down to test the more obvious medium-term weekly high 1.12775 as support. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: The 4hr timeframe shows that price sold off around 1.14655, and broke below 1.14, which has just recently been retested as resistance. Assuming the sellers can hold out below here, we see no reason why price will not test the 4hr decision-point demand area below at 1.13387-1.13635. This area which formed on the 03/11/2014 is where we believe a decision was likely made by pro money to break above the daily high (1.13842). It could effectively be a lovely area to go long from, since there could be unfilled buy orders still remaining around the 1.13671 area. However, we would advise waiting for some confirmation on the lower timeframes before entering long there, as we mustn’t forget that price could indeed continue lower to test the medium-term weekly high (1.12775) as support, which is nicely located around the 4hr decision-point demand area seen below at 1.12624-1.12873 (active buy orders are seen just above at 1.12916).

USD/CHF:

Weekly Timeframe: The weekly timeframe still shows price is capped between a weekly supply area coming in at 0.98378-0.95895, and a weekly resistance flip level seen at 0.94546. With that being said, at the time of writing most of the trading action is taking place within the aforementioned weekly supply area.

Daily Timeframe: This week started off with price forming a bearish pin-bar candle within a major daily supply area at 0.97505-0.96339. Tuesday showed us that the bears were in control and that the pin bar candle looked as though it was proven. However, yesterday saw active buying pushing price back up to the daily supply area which very likely caused panic for the majority of the pin-bar sellers, which as a consequence has likely stopped countless traders out at breakeven. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: A potential selling opportunity may be forming now. Check out how price consumed buyers around both the 0.96110 level marked in green, and also the psychological-number 0.96, and has now returned to the origin of the downswing (0.96439/0.96644). We feel that this may be a good area to enter short at, since we also have the added confirmation of the two selling wicks seen at 0.96585/0.96606. Our first target would be set around 0.95569, just above a 4hr resistance flip level coming in at 0.95540. We also mustn’t forget that this trade has extra weight due to price currently trading within a weekly supply area (0.98378-0.95895) at the moment.

XAU/USD (GOLD):

Weekly Timeframe: The weekly timeframe shows that price has broken below a weekly demand area at 1156.70-1194.45, which as a consequence forced further selling down towards a small weekly decision-point demand level coming in at 1136.30.

Daily Timeframe: The daily demand area at 1156.70-1166.05 was obviously consumed as well considering it was located deep within the aforementioned weekly demand area. This move has very likely opened the gates for price to challenge the daily demand area seen at 1101.60-1114.64. Why do we think price could drop that far? Take a look to the left of current price and take note of how most of the demand appears to have already been consumed by the demand consumption tails seen at 1156.04/1145.59/1131.64/1123.69.

4hr Timeframe: Unfortunately, for the time being we are unable to see the historical 4hr timeframe data on this feed. Nonetheless, we know that price is currently trading around a weekly decision-point demand level (1136.30) at the moment, and that the daily timeframe is showing signs of a further decline is on the cards (see above).

So with the above in mind, we will be watching the lower timeframe price action to see if there are any long entries around the aforementioned weekly decision-point demand level targeting at least the 4hr decision-point supply area coming in at 1174.84-1168.15. We have not ignored the daily-timeframe analysis, but as most traders are already aware, the higher timeframes takes precedence in most cases, and until the weekly demand level breaks negating a bullish bias we will be focusing on looking for longs at this point in time.

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